The year 2024 was a transformative one for the crypto industry. User acquisition surged, and the ecosystem dynamics shifted significantly. A recent report from Flipside brings to light the growth in user engagement, particularly on Base, a blockchain platform developed by Coinbase, and Ethereum. The report also highlights how decentralized exchanges (DEXs) and new blockchain projects are reshaping the competitive market landscape.
In the month of October alone, Base attracted 13.7 million new users, positioning it as the fastest-growing chain of the year, surpassing even Ethereum’s steady average of 1.56 million new users per month. Despite Bitcoin’s price hitting the $100,000 mark, its growth was relatively slow, pointing towards speculative interest as opposed to new user onboarding.
Ethereum’s consistent performance in user acquisition reaffirms its established market position. However, the rapid growth of newer chains like Base underscores the potential for ecosystem disruption. Notably, Polygon also saw considerable engagement by leveraging non-DeFi activities to widen its user base.
Interestingly, Base attracted 15.1 million super users, defined as those with over 100 transactions. This achievement surpasses that of Ethereum and Polygon, demonstrating Base’s capacity for active user engagement, making it a standout platform. On the other hand, Polygon stood out by diversifying its activities and maintaining high transaction volumes across gaming and non-financial use cases.
The Flipside report also explores how decentralized exchanges (DEXs) are evolving. Uniswap cemented its dominance in the DEX sector by capturing 91.3% of acquired user activity on Base and also expanded its market share on Ethereum. Trader Joe maintained its lead on Avalanche, backed by features like Auto-Pools and multi-chain capabilities.
These developments suggest a consolidation of DEX activity around major players, indicating a maturing market. Nonetheless, newer chains face the challenge of balancing innovation with user retention.
In the case of new blockchain networks like Aleo, despite showing promising growth, maintaining user engagement remains a challenge. Comparatively, Base has emerged as a model for scaling engagement through innovative features and strategic partnerships.
As per the Flipside report, regulatory clarity played a crucial role in shaping the 2024 crypto landscape. The EU’s Markets in Crypto-assets Regulation (MiCA) boosted institutional confidence, resulting in ETF launches and greater adoption.
Ethereum continues to be a pivotal foundation for innovation, specifically for Layer 2 solutions. But, fostering deeper engagement and developing new use cases remains a challenge. As the crypto market matures, new trends like GameFi and artificial intelligence integration are poised to drive further adoption.
“The challenge lies in building ecosystems that create meaningful, lasting engagement, not just fleeting speculation. Most blockchains are still scratching the surface when it comes to turning casual users into high-value contributors,” the report noted.
In conclusion, 2024 was a pivotal year for crypto, with established platforms like Ethereum and emergent ones like Base competing for user engagement and activity. The future will hinge on how these chains balance innovation, user retention, and regulatory adaptation to sustain momentum in 2025. With Base leading the way and Ethereum consolidating its dominance, the competition is far from over.